Solvency.

Every dollar the market can pay out is already in escrow. The payout is a division of money already in escrow, not a promise against a balance sheet.

The identity.

A pair exists only because $1 went into escrow when it was minted. Settlement pays each side a fraction of that same dollar, and the fractions sum to $1 by construction. The system owes exactly what it holds. The escrowed dollar earns the risk free rate while it waits; that interest follows the same division at settlement.

No debt anywhere.

No borrowers, no margin accounts, no liquidations. Either side's worst case is what it paid for its shares.

What the escrow reports.

Two numbers, separately: the escrow it holds, and what the market prices each side at. One dollar in escrow for every pair outstanding, checkable by anyone at any time.

What this does not solve.

• Your portfolio and the index moving by different amounts.
• Thin liquidity in one side during stress.
• An interruption in the official publication (a published fallback applies).
• Custody, oracle, or smart contract failure.